Need Recognition, Search, Prepurchase Alternative Evaluation, Purchase

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Need Recognition, Search, Prepurchase Alternative
Evaluation, Purchase
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Need Recognition

• Depends on how much discrepancy exists between
  the actual state and the desired state

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Need Recognition Process
Desired State
Actual State
Degree of Discrepancy
At or above Threshold
Below Threshold
Need Recognition
No Need Recognition
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Need must first be activated before it can be
recognised

• Such factors operate by altering the persons
  actual / desired states

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Need activation factors

• Time
• Changed circumstances
• Product acquisition
• Product consumption
• Individual differences
• Marketing Influences

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Search

• Motivated activation of knowledge stored in
  memory or acquisition of information from the
  environment

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Search can be

• Internal memory, knowledge, habit, purchase,
  degree of satisfaction
• External when internal search is inadequate.
  External search could be pre-purchase search or
  on-going search

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Dimensions of Search

• Degree
• Direction
• sequence

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Degree of Search

• How many brands?
• How many stores?
• How many attributes?
• No. of information sources?
• How much time?

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Direction of Search

• Which brands?
• Which stores?
• Which attributes?
• Which information sources?

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Sequence of Search

• In what order of brands considered?
• In what order of stores visited?
• In what order of attributes considered?
• In what order of information sources processed?

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Determinants of Search

• Situational
• Product
• Retail
• Consumer

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Consumers engage in more search as their attitude
towards shopping become more favourable

• Age and income is often negatively related to
  search

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Prepurchase Alternative Evaluation

• The process by which a choice alternative gets
  evaluated and selected

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Evaluative criteria

• Price
• Brand name
• Country of origin
• Situational influence
• Similarity of choice alternatives
• Motivation
• Knowledge
• Involvement

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Decision Rules

• Non-compensatory methods
• Compensatory methods

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Non-compensatory Decision Rules

• Lexicographic
• Elimination by aspects
• Conjunctive

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Compensatory Decision Rules

• Simple additive
• Weighted additive

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Some learnings

• Consumers typically have some determinant
  attributes that are salient to actually influence
  the evaluation process
• Consumers use some cut-offs on attribute values.
  A brand that fails to meet a cut-off may be
  rejected regardless of how well it performs on
  the other attributes
• Consumers make trade-offs between quality of
  their choice and the amount of time and effort
  necessary to reach a decision

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Purchase

• Not all purchase intentions are fulfilled
• Reasons could be
• Changed motivations
• Changed circumstances
• New information
• Desired alternatives are no longer available

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Choice of Alternative

• Fully planned purchase both product and brand
  are chosen in advance, Extended problem solving
  and high involvement (61)
• Partially planned purchase intention to buy
  product but brand chosen at the time of purchase
• Unplanned purchase both product and brand are
  chosen at point of sale.(50)

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Options for the source of purchase

• At home travelling salesmen, internet, phone
  ordering, mail-order, catalogues
• Retail

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Shopping motivations

• Information acquisition
• Alleviating loneliness
• Dispelling boredom
• Escape
• Fantasy fulfillment
• Relieving depression

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Shoppers are a dwindling species

• Reasons
• Less leisure time
• Buying less
• Shopping has ceased to be a pleasure
• Spending less time at shops
• Prefer to buy from home

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Enhancing Relationship Marketing

• Consumer value addition quality, consistency,
  EDLP
• Personal selling- perceived knowledge and
  expertise, perceived trustworthiness, customer
  knowledge, adaptability
• Sales Promotion to avoid the rigour of EPS
• Databased marketing ongoing personalized
  contact, loyalty programmes, direct mailers